Copper prices were steady at Rs 668.05 per kg on April 1 as participants increased their short positions as seen by the open interest. The base metal traded in the negative territory after a gap-down open, tracking muted global cues.
The non-ferrous metal has been trading higher than 50, 100 and 200 days’ moving averages but lower than 20 and 5 days’ moving average on the daily chart. The Relative Strength Index (RSI) is at 48.23 which indicates sideways momentum in prices.
Copper prices slipped to their lowest in almost a month on April 1 on concerns over slowing growth in top metal consumer China as it seeks to rein in debt levels and trim stimulus spending.
Copper Inventories at LME approved warehouses have decreased giving a deficit on the supply side. The metal production in the world’s top producer Chile dropped by 4 percent in February to 430,100 tonnes.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX April Copper is trading in a bearish channel for the past three weeks. Prices are trading near the resistance of the channel and bears could dominate the upcoming session, where Rs 661-Rs 657 levels could be tested.”
In the futures market, copper for April delivery touched an intraday high of Rs 668.60 and a low of Rs 663.35 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 657.85 and a high of Rs 732.70.
Copper delivery for April gained Rs 0.10, or 0.01 percent, to Rs 668.05 per kg at 18:52 hours with a business turnover of 3,094 lots. The same for May contract rose Rs 0.65, or 0.10 percent to Rs 669 per kg with a turnover of 101 lots.
The value of April and May’s contracts traded so far is Rs 1,024.18 crore and Rs 15.83 crore, respectively.
MCX Copper price is expected to trade in a bullish trend with support at Rs 661 level and intermediate support at Rs 664 level, said Motilal Oswal. The brokerage firm advised its clients to buy on dips targeting higher resistance at Rs 669 – Rs 672 zone.